Ever since the emergence of a digital era, the doorway to worldwide trading has been has been and keeps getting more and more and accessible with every passing day. It’s been a decade since the birth of cryptocurrency , the digital currency, and the most well- known one is Bitcoin. You would have definitely heard about it before but like any careful investor you must have had your doubts on whether or not to invest in Bitcoin.
Looking at the past variation in worth of one Bitcoin, it is only understandable that often people hesitate to take such risks. However. It is better to have a good understanding of Bitcoin in order to know how it works.
Where does Bitcoin Come From
You cannot obtain a Bitcoin on paper. It’s not centralized. Bitcoins are generated as of form of reward for Bitcoin “miners”, who solve different levels of system generated math problems using specialized computers, which is a tough process. Now , more the number of miners, toughers are the questions and it’s less likely for one particular person to make the correct guesses. Every correct guess earns him a Bitcoin it becomes a part of his “blockchain” which is nothing but a transactional ledger.
What is the value of a Bitcoin
It is variable. The values associated with Bitcoin has seen an enormous rise as well as fall over the last few years, which makes it very volatile and unpredictable. In 2017 Bitcoin led the charge to a valuation of nearly $20,000 per coin, but then its value steadily declined over the course of 2018 and settled in the range of $3,500 to $4,000 for quite some time.. Because of this high rise and immediate steep fall, many people stepped back from investing in Bitcoin. But in the recent time, Bitcoin’s value has been streadily increasing and some analysts even recommend that it may reach a peak of $20,000 once this year, provided it remains consistent. This has re-attracted many of the past users as well as new investors to consider Bitcoin as a serious means of investment in the future.
As a matter if trivia, you’d be surprised to know that if on Jan 1, 2011, you had invested $1 in Bitcoin, You would have made $28,751.278!
What are the risks attached to investment in Bitcoin
First of all, Bitcoin is a completely online and digital mode of currency which makes it liable to fall prey to hacking. If at the the system is hacked and your Bitcoins are stolen, tracing it will be very difficult. But for that, they have a secure and tamper-free mechanism which over the last two years, has been improvised with the help of proper supervision and stricter regulatory mechanisms by both the institution as well the government. Many industrialists seem to have invested in it as well.
Second is the volatility of its value, as discussed earlier. You need a little bit of good luck to reap benefits from what you sow. Present stats show that the odds might well be in your favour and you will be benefited.
So, is it still profitable to invest in Bitcoin?
Despite the risks, yes. It is profitable. But for that you must do your own reasearch to understand how and how much to invest. You definitely don’t want to go all in with nothing left. It’s best to have diversified investments, if you ask me. That being said, in today’s world it’s only advisable to take a step forward and be a part of the digital financing world and for that Bitcoin is definitely a profitable investment for you!